The bill amends the Arkansas Code regarding payments for corrective actions related to petroleum storage tanks. It establishes that no payment from the Petroleum Storage Tank Trust Fund will be made until the owner or operator has expended a deductible set by the Arkansas Pollution Control and Ecology Commission, replacing the previous fixed amount of $7,500. This deductible is intended to function similarly to an insurance policy deductible. Additionally, owners or operators must demonstrate financial responsibility for this deductible amount.

Furthermore, the bill outlines that the deductible amount incurred before receiving payment for corrective action will be determined by rule, with input from the Advisory Committee on Petroleum Storage Tanks, and will not exceed $30,000. The Arkansas Pollution Control and Ecology Commission is tasked with establishing a deductible that can vary based on specific violations of rules, ensuring that the deductible is more than $7,500 but does not exceed the $30,000 cap. This amendment aims to enhance the regulatory framework surrounding corrective actions for petroleum storage tank incidents.

Statutes affected:
Old version HB1277 Original - 1-28-2025 10:59 AM: 8-7-905(d), 8-7-907(a), 8-7-907(d), 8-7-907
Old version HB1277 V2 - 3-18-2025 10:43 AM: 8-7-907(a), 8-7-907(d)
HB 1277: 8-7-905(d), 8-7-907(a), 8-7-907(d), 8-7-907
Act 706: 8-7-907(a), 8-7-907(d)